Sarah Sanders Won’t Back Down After CVS Threatens To Leave Arkansas

Arkansas Republican Gov. Sarah Huckabee Sanders is not backing down after pharmacy giant CVS has threatened to leave the state over a new state law targeting drug middlemen called pharmacy benefit managers, or PBMs.

In an interview with The Daily Wire, Sanders said she would not allow CVS, which owns one of the “Big Three” PBMs called Caremark, to “manipulate and control the market simply so that they keep a few stores in our state open.” 

“It shows where their priorities are,” the governor said over CVS’s response to the law. “They would rather own the PBM than keep their pharmacy open and provide care to the patients they claim to care about. I think it tells us everything that we need to know, that they care more about their bottom line.”

“Look, I’m all for private industry making money, but not on the backs of the people who really need access to care, really need access to some of these specialty drugs that they’re inflating the market on,” Sanders continued. 

The Republican told The Daily Wire that other pharmacies are willing to take CVS’s place if need be.

“We have a number of other pharmacies that I know will be happy to step up and take CVS’s place if they decide to take their ball and go home,” Sanders blasted. 

As highlighted by The Daily Wire last month, CVS said it might have to close all 23 of its pharmacies in Arkansas over the new policy. The company issued similar threats before Sanders signed the bill into law in April.

The law in question is a first-in-the-nation targeting of PBMs, and is set to go into effect in January 2026. It bans PBMs from holding permits for prescription drug sales in Arkansas.

PBMs are supposed to lower drug prices for Americans. They act as middlemen between drug manufacturers, insurance companies, and pharmacies, and negotiate prices.

However, over the last decade, PBMs have consolidated, and now there are just three companies overseeing prescriptions for more than 270 million Americans. They’ve been accused by both Republicans and Democrats of inflating prices for their own benefit and driving small pharmacies out of business. 

“What was happening is you have these pharmaceutical companies, they’re supposed to use PBMs to negotiate better drug prices between the insurance companies and the pharmacies,” Sanders explained. “But what was actually happening is the pharmacies were buying the PBMs and completely controlling and monopolizing the market. We call ’em drug middlemen, because that’s exactly what they are.”

“They’re over-inflating prices and passing that inflation down to the consumer,” she continued. “You had three of the largest PBMs in the country controlling 80% of the pharmaceutical market – complete control allows them to charge more.” 

Sanders also stressed that this law in Arkansas is intended to help small pharmacies keep their doors open. PMBs reportedly pay lowball prices to small independent pharmacies, forcing many to close their doors. 

“We’re optimistic that prices will come down not only in our state, but also that our local pharmacies will be able to keep their doors open, which was another big priority for us, so that people in rural communities don’t lose that access to care,” Sanders said. 

In a statement sent to The Daily Wire on Wednesday, CVS called the law in question “harmful” and “unconstitutional.”

“We’ve filed a lawsuit to block Act 624, a harmful law that will shut down 23 CVS Pharmacy locations, eliminate hundreds of jobs, and drive-up costs for Arkansans,” the statement said. “This unconstitutional law puts local politics ahead of patients, restricting their access to life-saving medications and undermining fair competition.”

The company notes its PBM reimbursing small independent pharmacies in the state more than it does CVS pharmacies.

About a month after Sanders signed the Arkansas bill, President Donald Trump signed an executive order targeting PBMs. The EO encourages direct consumer purchases, cutting out PBMs, and mandates more pricing transparency.

Sanders said momentum is building across the country to tackle this issue. 

“I think the big thing here is that this isn’t just going to be something that takes place in Arkansas,” she said. “You’re seeing Louisiana look at passing similar legislation, New York, Texas, other states all over the country. It’s not even a Republican or Democrat issue. This is something that I think a lot of governors, as well as this president, are recognizing and actually taking action on something that’s been needed for a long time.” 

Sanders said she’s optimistic that consumers will have more access to prescription drugs and lower prices soon after this law goes into effect in 2026. 

WATCH the Morning Wire interview with Governor Sanders:

This post has been updated to include comment from CVS. 

Related: Every CVS Pharmacy In Red State Might Close After Crackdown On Drug Middlemen